The British recovered paper industry continues to face weak demand and low collection volumes as well as the ongoing shipping crisis in February.
However, all the material is still moving: sales are brisk even though it is partly an uphill struggle, players told EUWID.
Experts who spoke with EUWID were all convinced that the Red Sea crisis will not be resolved soon and ships will be forced to take the detour around the Cape of Good Hope for some months. The situation makes business more complex and increases costs. At the same time, the status quo had become almost routine, players told EUWID.
As a result, the cost increase for sea freight containers turns out to be lower than the hike initially announced by shipping companies. The extra cost per container from North Sea ports to the Far East ranges between $350 and $550, according to insiders. Freight rates to India have increased more, but that change was the result of other factors such as more expensive feeder transport to Indian ports, say experts. Price increases of up to $1,000 have reportedly been announced in this case.
At least for March, experts expect conditions to ease for other Asian destinations. The availability of containers and freight capacity are said to be adequate. Shipping companies have understood that excessively high freight rates will choke their business – especially given that some competitors are still not demanding a surcharge. However, one player fears that availability of vessels and containers could worsen in April when international freight traffic improves.
Please find the full report on our website or this week's issue.
